Vancouver, B.C. -- July 22, 2008 -- Sultan Minerals Inc. (SUL-TSX-V)
("Sultan") is pleased to report continued
exploration and resource assessment of tungsten and molybdenum on its
Jersey-Emerald molybdenum and tungsten property (the "Property"),
located near Salmo, BC. Diamond drilling is currently underway on the
Property. Sultan has contracted Giroux Consultants Ltd. ("Giroux")
of Vancouver, British Columbia to complete an updated resource estimate on
the tungsten mineralization.
TUNGSTEN
The 2008 summer drilling program is underway on the Property. This 5000-foot
(1500m) drill program will provide infill sampling within the expansive East
Emerald Tungsten zone. The current program has completed 3 drill holes to
date, with an additional 6 to 8 drill holes planned.
The East Emerald Tungsten zone was previously intersected in historic
drilling during exploration and development of the Property up to 1972, and
by Sultan in 2006 and 2007. The East Emerald zone extends northward from the
historic Emerald Tungsten mine, and lies above and to the east of previously
mined areas in the Emerald, Feeney, and Invincible Tungsten Mines.
Interpretation of the historic and recent drilling indicates two mineralized bodies.
Drill core analyses within these mineralized zones indicate elevated grades
of WO3 over significant widths.
The drill hole database for the Property has been updated to include all of
the historic and recent drill holes that intersect the East Emerald Tungsten
target. Geologic interpretations of the tungsten bearing zones have been
digitized in Gemcom-Surpac (6.3) software to allow for preliminary resource
evaluation. Sultan has contracted Giroux to complete a resource calculation
based on this new geologic interpretation for the East Emerald Zone. As well, the drill hole
database indicates that there is potential for remnant tungsten
mineralization immediately surrounding the historic Emerald Mine, which
historically produced 734,000 tons of 0.93% WO3. This potential
tungsten resource will also be included in the Giroux evaluation.
Exploration for tungsten on the Property is continuing toward the goal of
outlining a resource that meets the requirements for production. These
requirements were summarized in the Wardrop scoping study completed for
Sultan in 2007 (see news release of May 23, 2007). The study recommended that
exploration continue to further strengthen the tungsten and molybdenum
resources, and move those resources toward feasibility. Since the time of the
Wardrop study in early 2007, Sultan has completed approximately 55,000 feet
of drilling in 94 drill holes on the Property in an effort to further
delineate tungsten, molybdenum and lead-zinc resources.
The current preliminary resource estimate for tungsten of 2,510,000 tonnes
grading 0.379% WO3 was evaluated from the East Dodger and
Invincible mine areas. With the addition of the Emerald Mine remnant
material, and East Emerald tungsten zone, the total tungsten resource is
expected to improve dramatically.
The NI 43-101 compliant mineral resource estimate for the East Dodger and
Invincible areas, which was completed by Giroux on November 20, 2006, is
summarized below:
|
Tungsten
Resource
|
Cutoff
|
Tons
|
WO3%
|
Pounds of
WO3
|
|
Measured
|
0.15
|
1,200,000
|
0.379
|
9,096,000
|
|
Indicated
|
0.15
|
1,310,000
|
0.365
|
9,563,000
|
|
Measured Plus Indicated
|
0.15
|
2,510,000
|
0.372
|
18,674,000
|
|
Inferred
|
0.15
|
1,200,000
|
0.397
|
9,607,000
|
This assessment is preliminary in nature and includes inferred mineral
resources that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to be
categorized as mineral reserves, and there is no certainty that the
preliminary assessment will be realized. The following assumptions were made
to develop this preliminary assessment:
- Geological
mineralization is continuous between drill holes;
- Existing mine workings
have been digitized from previous mine plans and accurately account for
the material previously mined out of the orebody; and
- The financial
evaluation was determined using an economic cutoff grade of 0.233% WO3.
MOLYBDENUM
Sultan recently completed a 12-hole underground drill program within the East
Dodger Molybdenum zone. These drill holes investigated the western extension
of the zone where high-grade molybdenum intersections were encountered in
previously reported drill holes JM07-04, JM07-16, JM07-17 and JM07-18 (see
News Release of Jul 18, 2007). The recent drill results confirm the
previously reported molybdenum intersection showing a series of high-grade
molybdenum rich quartz veins within an extensive low-grade molybdenum
stockwork.
Results of the first 5 drill holes were presented in a news release dated
June 23, 2008. Three drill holes were drilled from a single collar located in
an underground haulage tunnel situated beneath the Jersey Lead-Zinc Deposit.
The holes were collared 500 feet west of the East Dodger Molybdenum Zone
where molybdenum mineralization was previously intersected in 21 diamond
drill holes over an area measuring 3,200 feet north-south by 400 feet
east-west. Complete results from the underground drill program are currently
being tabulated and will be provided in a subsequent release.
Mr. Perry Grunenberg, P.Geo., of PBG Geoscience from Kamloops, BC, is
Sultan's project supervisor and "Qualified Person" as defined by NI
43-101, "Standards of Disclosure for Mineral Projects". Mr. Ed
Lawrence, P.Eng, former Manager of the Jersey and Emerald Mines under
Placer-Dome, oversees all on-going diamond drilling programs for Sultan.
For further information on the Company's projects, visit www.sultanminerals.com.
Arthur G. Troup, P.Eng.,
Geological
President and CEO
For further information, please
contact:
Marc Lee, Investor & Corporate Communications
Tel: (604) 687-4622 Fax: (604) 687-4212 Toll Free: 1-888-267-1400
Email: mlee@sultanminerals.com
or info@sultanminerals.com
or
Catarina Cerqueira, Associate Account Manager
CHF Investor Relations
Tel: (416) 868-1079, Ext. 251
Email: catarina@chfir.com
Or
Barbara Komorowski, or Eric St.-Pierre
Renmark Financial Communications
Tel: (514) 939-3989
Email: bkomorowski@renmarkfinancial.com
The TSX Venture Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of the contents of this
News Release. This release was prepared by Sultan management and no
regulatory authority has approved or disapproved the information contained
herein. This news release includes certain statements that may be deemed
"forward-looking statements." All statements in this release, other
than statements of historical facts, that address future production, reserve
potential, exploration drilling, exploitation activities and events or
developments that Sultan expects are forward-looking statements. Although
Sultan believes the expectations expressed in such forward-looking statements
are based on reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ materially
from those in the forward-looking statements. Factors that could cause actual
results to differ materially from those in forward-looking statements include
market prices, exploitation and exploration successes, and continued
availability of capital and financing, and general economic, market or
business conditions. Investors are cautioned that any such statements are not
guarantees of future performance and those actual results or developments may
differ materially from those projected in the forward-looking statements. For
more information on Sultan, investors should review Sultan's filings that are
available at www.sedar.com or Sultan's website at www.sultanminerals.com.
You can also view this News
Release on our website at:
http://www.sultanminerals.com/s/News-2008.asp?ReportID=312583